Gold prices reached a new all-time high on Monday, driven by renewed investor interest in exchange-traded funds (ETFs) backed by the precious metal. Spot gold peaked at $2,956.19 per ounce, surpassing the previous record set on Thursday, before paring some of its gains. The precious metal has risen for eight consecutive weeks, marking its longest streak of gains since 2020.
Gold-backed ETFs saw the largest net inflows since 2022 last week, further supporting gold’s upward trajectory.
Investor demand for gold as a safe-haven asset has been fueled by rising concerns over President Donald Trump’s disruptive trade and geopolitical policies. Goldman Sachs raised its year-end price target for gold to $3,100, citing central-bank buying and expanding ETF investments as key drivers of the metal’s strength.
The Bloomberg Dollar Spot Index pared earlier losses, remaining largely unchanged by 12:49 p.m. in New York, following reports that U.S. business activity slowed and consumer confidence weakened, while inflation expectations surged. Swaps markets are now pricing in additional rate cuts by the Federal Reserve this year, with traders forecasting the first reduction in July 2025, rather than September. A weaker dollar and lower borrowing costs generally benefit gold.
This week, the Federal Reserve’s preferred inflation gauge will be released on Friday, with expectations for it to cool to the slowest pace since June. However, despite this, persistent price pressures will likely keep policymakers cautious about making further rate cuts.
As of the latest data, spot gold was up 0.2% at $2,942.88 per ounce. Meanwhile, silver and platinum posted modest declines, while palladium fell sharply by 2.6%.
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